Sphere Drake Insurance v. Madrigal Rental, Inc.

MEMORANDUM *

Appellee Sphere Drake Insurance, PLC brought this action seeking a declaration that it has no duty to defend or indemnify its insured, David Madrigal and Madrigal Rentals, Inc. (collectively, Madrigal) with respect to claims by Appellants Angelo and Cindy Ficarotta against Madrigal in an underlying state court tort suit (“Ficar-otta Action”). Appellants appeal the district court’s order granting summary judgment in favor of Sphere Drake. We have jurisdiction under 28 U.S.C. § 1291 and we affirm. We review the district court’s *499 grant of summary judgment de novo, and may affirm on any basis supported by the record. Valdez v. Rosenbaum, 302 F.3d 1039, 1043 (9th Cir.2002). As the parties are familiar with the facts, we do not recite them here.

Under California law, an insurer is relieved of liability if (1) its insured breaches a notice provision in the insurance policy and (2) this breach results in substantial prejudice to the insurer’s defense of the insured. Am. Int’l Specialty Lines Ins. Co. v. Cont’l Cas. Ins. Co., 142 Cal.App.4th 1342, 1366 , 49 Cal.Rptr.3d 1 (Cal.Ct.App. 2006). There is no triable issue that either element has not been met in this case. The…